Why low-risk investments are an income for life
Investment risks were never as great as they are today, says Barry Wyatt, general manager, marketing and strategy at AXA North.
In this risky investment climate, no one wants to lose their investment - particularly those approaching retirement or who are retired. They often don't have an opportunity to save up again.
The market has created a series of guaranteed, low-risk investments that insure and protect initial capital and contributions against a falling sharemarket.
AXA North has three guarantee products: the protected investment guarantee, the protected growth guarantee and the protected retirement guarantee.
The protected investment guarantee is available for six to eight-year periods, returns all initial capital and all contributions, and locks in any positive investment growth every two years.
The protected growth guarantee is for 10 or 20-year terms and locks in any growth each year, while the protected retirement guarantee pays clients a guaranteed income throughout retirement for the rest of their life.
AXA North has recently overhauled the features and services of these three products to bring them in line with imminent changes to the financial services industry.
In addition to the guarantees, insurance and many managed funds on offer, the new North platform has added shares and exchange-traded funds, model portfolios, term deposits, 41 extra managed funds and flexible pricing to its offerings. This allows investors to change their portfolio to suit their needs.
Money verdict
If you want a guaranteed income for the rest of your life when you retire, you don't have a lot of options.
This one allows you to invest in a wide range of assets with a guarantee to preserve it. The AXA North Protected Retirement Guarantee costs 0.62%pa in addition to the indirect cost ratio and administration fee.
On the upside, you can lock in any annual gains each year of the term. Costs of the guarantee products are in line with competing products. The North product has many more investment options than others on the market.
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